How to start trading in the stock market?

As one of the most profitable ways to invest, it offers enough opportunities for work: these are both long-term and short-term investments. In order for your trading to please you with a stable profit, you need to properly prepare for it, for this:

  • Find the required amount (minimum for the trading entry threshold), which should not be the last money;
  • Prepare psychologically for possible losses;
  • Try to work on a demo account (try not just to trade, but to achieve a specific goal);
  • Improve your theoretical knowledge base about the market, get training in trading (read books for beginner traders, for example);
  • Select and ;
  • Learn to monitor the market situation, news and anything that can affect the rise or fall in the value of assets (for example, the introduction of a new iPhone model usually causes a company's stock to rise rapidly).

Stock Market Trading Strategies

The best stock market trading strategies determine your income. Most often, the choice of strategy is influenced by the personality of the trader, the intensity of trading, market conditions. With the right strategy, you can get the most out of the stock exchange. The following stand out among the strategies:

  • Investing in company growth, when organizations increase (otherwise this process is called: reinvestment) their profits in a business in order to optimize the workflow. Such a strategy will allow you to get short-term income.
  • Investing in the value of assets, when investors acquire assets and take a wait-and-see attitude until the assets begin to grow in order to sell them more expensive and get their profit. Such a strategy is only successful in a long-term approach, it is better suited for a situation where market volatility is low.
  • Investing for a fall, when the profit comes with a general decrease in dynamics. Then market players sell shares and then buy them again when the value of assets decreases.
  • Income investment, which is more suitable for generating income in uncertain economic conditions. In this case, investors buy those assets that show growth in a difficult market situation.


Video taken from finamfm YouTube channel

Today, all stock market players can act either as investors or speculators (Who is more profitable: a speculator or an investor? Find out). As their work strategy, investors choose a long-term wait-and-see position in order to profitably sell assets and earn on price changes:

  • Long-term investors acquire assets of promising organizations for a period of more than 1 year, using data from fundamental analysis, maybe technical analysis.
  • Medium-term investors acquire assets for up to a year, working with technical and fundamental analysis data.
  • Short-term investors acquire assets for periods of up to several weeks, working with technical analysis.

By the way, there are many speculators on the stock market who buy assets for less than a week, actively working with price dynamics:

  • So, scalpers, having acquired assets, immediately put them up for sale at the offer price.
  • Swing traders, on the other hand, hold their positions for periods ranging from several hours to several days, using data on market fluctuations.
  • Day traders prefer to work only intraday and only with highly volatile assets, relying on minute price fluctuations and taking advantage of trading at short time intervals (the external situation does not have time to affect short transactions). They are also called "intraday" - that is, intraday traders.

How to work and what role to take on the exchange, only you decide, based on when you would like to receive income, whether intense intraday trading suits you, or whether you want to buy stocks and, investing long-term, calmly wait for profit. In general, what kind of investor you better be in the stock market will be answered by next questions:

How willing are you to risk?

Feeling that you are not ready to risk everything, rest assured that you are more suitable for long-term investing, which is characterized by lower risks and more predictable market dynamics. For those who are ready to risk capital, it is worth trying intraday trading, which is characterized by increased risks and high trading dynamics. Some traders join the ranks of aggressive market players, for whom it is important to get a big income for a start, while the issue of reliability fades into the background; moderate investors also work on the exchange, who work more calmly, consciously perceive risks and do not trade with market uncertainty; conservative market players put the reliability of investments in the forefront, while they are aimed at obtaining a small income, but with minimal risks.

How much time are you willing to devote to trading?

Before you start diving into an exciting journey through the stock exchange, do not forget to think about your motivators that will make trading more conscious: What is the purpose of trading? What kind of income do you dream of? Where will you spend your first funds? What kind of life do you dream of and what would you like to change in your current situation? Also, when thinking about your trading on the stock exchange, answer the following questions, but now of an organizational nature: what funds will you invest in trading, how much time will you be able to devote to trading, will you work fully and do you evaluate your financial capabilities.

Free video tutorials for beginner exchange players

So, from what moments is it better to start working on the exchange for a beginner? From training in order to be able to navigate the exchange, understand the principle of its work, the role of a broker in the overall system. Success is impossible without knowledge of the basics of analysis, money management rules, the ability to analyze the market, the ability to build and optimize your trading strategy. All this should not scare you, because immersion in a previously unknown area of ​​\u200b\u200bknowledge is always accompanied by an acquaintance with its basics. In addition, the network has a lot of opportunities for free and paid training in trading on the stock exchange.

Free lessons for beginner exchange players are offered by leading stock brokers: Finam, BCS, KIT Finance Broker, Otkritie Broker, specialized resources: Xelius Group, Moscow Exchange School, H2T Academy, YouTrade.TV, The Wall Street Pro, Gerchik & Co, etc. .d. You can subscribe to their channels by going to youtube. Most often, such official youtube channels contain educational information (courses, tips from successful traders, the best trading strategies, etc.), as well as analytics, materials that will help you work on the market psychologically correctly (lessons from leading traders and tips on how to take risks, do not be afraid to trade, avoid a trader's stupor, etc.). Free and paid informative courses are offered on the portals FxClubAcademy, ALOR +, 1000%, Finam, BCS, Solid, AMarkets, ITinvest, KUBAN TRUST, etc.

Cultivating certain qualities in yourself is also what you need to start trading on the stock exchange in the first place. Professional players must have such qualities as emotional stability, discipline, stress resistance, independence, and the ability to take risks. You will also need mathematical and communication skills.


Video taken from the Xelius Group YouTube channel

Stock market. Course for beginners. A great option for those of you who have never experienced trading in your life.
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Investments, William F. Sharp. This is a whole training manual that will allow you to get high-quality knowledge on investing in assets “from scratch” and in an accessible way.
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Supertrader, V.Tarp. This useful publication is one of the most comprehensive in covering the main aspects of day trading, the philosophy and mathematics of successful speculation, as well as equally valuable issues regarding psychology and risk management.
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Technical analysis. Course for beginners. This publication should be considered one of the most important in the library of a successful investor and stock speculator, it is undoubtedly the best book that gives the basics of technical analysis.
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Alchemy of Finance, J.Soros. This is one of the most popular among investors and speculators book about the famous financier George Soros, which will reveal to you the secrets of a successful game.
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The practice of stock speculation, W. Niederhoffer. A useful publication for stock market players that will tell you how the misinformation and propaganda that daily falls on investors from the media happens and how to avoid it by focusing on making money online.
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Stock trading. The classic formula for timing, money management and emotions, J. Livermore. The book of one of the most successful stock speculators, which is especially popular with Internet traders, allows you to understand the mechanisms of successful trading. Due to autobiography and historical details, the edition is easy to read.